before this is happening there's already been a lot of controversy and talk about the possibility of this very thing happening prior to today. he was given granted a holiday to think about retirement will basically voluntary resignation and of course we know that he was not going to quit now according to russian law there are two ways that federal official of a region could lose his. dismissal or of course an order from the head of state and we know that in this incident in this case it is an order from russian president dmitri it's a very highly anticipated decision not just in political circles but muscovites as well as the president is all the way in the shanghai and this is what he had to say about the decision. but. i decided to dismiss the mayor of moscow the decree i signed states that i as president has lost trust in me. and it is a legal reason for his dismissal it's happened for the first time but i do not rule

out that such cases might happen again i cannot work with fish oils i can't trust them. so looking back over the past eighteen years let's talk about the legacy here what kind of legacy to. leave behind. well. leave behind a very visible legacy with. he has been credited for giving the city a facelift one of those. because of him was rebuilt and people are saying that this is one of the most beautiful. they give him credit for that on the other hand there's also that right behind me if you could see through the rain be a peter the great and must have i think it's one of the ugliest marks here in the city now the contrast between. these two parties very much like the opinions that he's getting from the public is a very polarized opinion either they love him or they hate him and also through the years he's been putting forth top. this policies that have really created these two

polar extremes now let's hear what some of the people had to say about the start. of the oppositional beautiful when he came to his position there was chaos he did do something but you can't stay in one place for too long or his agent strong family ties played against him the city now looks neglected he didn't reconstruct the roots he preferred building hotels i can't say where the luzhkov is good or bad he is a very contradictory person like kenya of us there are many things in moscow i'm against but the newcomers who are now like hosts who are making us feel like guests i'm against barry caracas russian of moscow but of course of a many positive things during his term. so of course now we know that the eighteen year tenure. as a mayor of moscow has been filled with both praise and criticism and now it has come to one that so the next step for the a really good night of russia party would be to hold

a consultation on the nomination of a new mayor and so this is expected to be happening quite soon i'll just have a bit more background on why you described is such a controversial person let's look at the story father my colleague napoleon all because. the constant feature of the moscow mayor he's a legendary cab has been the subject of amusement throughout his eighteen years in power selling his custom made silver cap it's an auction of kindly granted nursery home the one million u.s. dollars. he's made or shipped meanwhile needs more than just one cap to cover the bald spots of his career he started making his fortune on the economic crisis of the late ninety's rumors of money laundering have haunted many of his multi-million dollar construction projects across the capital there's lots of problems in the city namely there is no affordable housing. there is a problem of people treated in the construction pyramids used to an hour. those

have to be dealt with before any question about future employment of them to be discussed while the country was losing money during the recent economic downturn in two thousand and nine income increased however the mayor claims it's not his money but he's wife's and about doing that he's russia's only female billionaire she was a property development company and many claim its list of political clout that lands her the deals both in wash and abroad coffees known free strong anti-gay stance never authorizing and even cracking down on gay pride parades now sure parts of our society with healthy morals do not accept most they just don't except for their last summer may blame him for mishandling the severest mock situation in moscow the city of short on toxic smoke for almost a month as wildfires rage while he was on vacation out of the city. this is one of course every specialist should be responsible for what they are interested with if

for example the mayor of moscow comes back from holidays for the next day after the smog over the capital has dissolved which was the case this time and i think it is unacceptable he should have been here half an hour after the small looks like has been concentrating a lot on his house rather than that of this city's residence. i don't drink maybe i'm missing out on something but for more than thirty years i haven't had a drop in the money that the russian government annually allocated to improve infrastructure rarely make it to the ramshackle roads of moscow he's also been criticised over the deconstruction of the city's historical and architectural heritage after his long cost footprint we'll see on the streets of the russian capital and then i'll go artsy moscow. reinhard croom head of the moscow office of a german political foundations says the former mayor is a victim of his own making. the mayor of moscow after all is not the prime minister

not the president and if there is a change in politics in the country the mayor of moscow should take that into consideration and i think he didn't do that. i think. really is in a much much better shape in the ninety's. but because moscow is the center and russia and a lot of. foreign investment is going to russia you have you need a different infrastructure you need a different approach than you had in the ninety's and in that sense i think moscow is looking behind them as far as i understand the president the prime minister i thinking of changing that and in as far as i understand that's not possible with me underscore for the former mayor as far as i understand he had the chance to sing and possibly resign on its own whatever the terms are which i clearly don't know. still i think now all he has resigned forcefully and still i think the country the

city should give him after after all the good so well. we are coming to you live from the russian capital this is r.t. and a boat carrying jewish activists attempting to reach blockaded gaza has been forced to divert to the port city of ashdod in israel by israeli warships among those on board is a holocaust survivor and an israeli man who lost his daughter in a palestinian suicide bombing a spokesman for the group that organized the journey says many jews don't support the israeli government's behavior towards palestinians. we've heard that there are what we understand international waters crew and happened to. take you out but we. really. need to get the. treatment now that it's ready or are we the blockade you need go. and we want any of the. to make

a. public statement. a collective punishment for the. good political challenge of the blockade of gaza and to the continued occupation. desperation on behalf of many. that the israeli government or the public. are not being conducted with our support or in our name and are not in our interest and we do not believe they are in the interest of. well. now almost four months ago nine pro palestinian activists died in an israeli raid on another aid flotilla launched from turkey a un report described the force as disproportionate and brutal this time a london based group jews for justice for palestinians who organized the voyage. founder of a non-governmental organization m e p store all says the government should show the same coverage as those on the photos. hard to know what to expect especially after

what happened months ago within marmora but it is true though that this is a jewish chin this is a jewish ship and this is a jewish ship made every effort to to reach the guy the real story is in the message of solidarity stand by jews on this ship with their muslim brothers in gaza we all know what's happened to bring us to this point and the israelis and the palestinians disagree what we need real right now is real leadership and between me and you if the leaders of the palestinians and of the israelis can show the same courage of the people on this boat and others around the world i think we have a chance to break the impasse. well from a strictly controlled communist ideology to an era of innovation under a new generation of open minded people that's how russia's president has described china after your visit at the world's biggest technology fair in shanghai that over

the expo two thousand and ten friends and future innovations what better place to come together then the shanghai expo where russia and china are the stars of tomorrow top us let me go to the main message of russia's exposition in chiang hai we're establishing your friendly relationship with china for decades to come in. president medvedev opened russia day and met with steve think paying deputy chair to hu jintao and the man seen as china's most possible future leader among the ground for what could be a partnership that shifts and shocks global power mr. bean is the most likely future leader of china it's unlikely they discussed with me very concrete plans for the future but it probably talked about mutual approach to russia china relations and global issues that is about most of the day together and took a good look of what china and russia have to offer. process brazilian is

a favorite this time around with its top talking energy companies putting on their best show so it was a good start of the year at this expose we're demonstrating the latest results in science and high tech and showcasing cooperation with our chinese colleagues but it's all part of a bigger picture push for rapid modernization when you could this exhibition is a unique chance to speed up the modernization of our economies in institutes and of its development is certainly the choice of our country who are following this path and will do everything for our economy to modernize change and in depth to modern life. and russia understands china is a great way to start made in china had a significantly different connotation just some few years back that's right take a closer look at the backs of your i pads and i pods they were most likely assembled here russia states china is the friend with whom to solidify a partnership bringing them into the future and past reporting from shanghai and

these are now a r.t. . north korean leader kim jong il has promoted his youngest son kim jong un to the rank of general and what's seen as the first step of a power transition it came before the country's ruling workers' party got booed for its biggest convention in decades no official announcements. made and the issue of succession has been shrouded in mystery but as artie's katherine that is out of the reports that practice is not uncommon in north korea. and the first century everything is global and all kinds of information is available online but there remains a lot of mystery in the world wide web that is north korea now many are pretty trade secrets not like that except ships he was one of you to visit the place and hopefully will share his impressions a alex so tell me you were in my gang what's it like what's your biggest impression be honest with you when i was going there i felt

a little nervous having read all the stories about north korea in the western media that it's scary place it's all to different sort of scary things when i arrived there i thought it was nothing like that but the one thing which rescue the most of the first days and first hours being in i saw a building on the other side of there over my hotel had no curtains on windows and i asked one of the assistants why is it like that he said well if you have curtains and all free it means you have something to hide so i got the impression that this society is open to its own government whilst its government is closed to the rest of the world it is the societies close to the world as well the world's attention is turned on north korea for the first workers party meeting in thirty years there are rumors of a man change but that according to those in the know is premature. i don't think we should expect any dramatic changes right away because power in north korea is built on the principles of succession and continuity kim jong il became

a leader first and foremost thanks to his image of a true follower of his father's legacy ideas and not to some distort of the foundations or is the person to lead the country's policy into a sharp turn so obviously the same is going to apply to kim jong il's successor. north korea's nuclear ambitions troubled the west and the secretive states tightlipped policies and everything has been successfully used as a tool by countries such as the united states. the united states in particular need a bad guy in the region to justify their military presence in the southern part of the korean peninsula and japan and for deploying our missile defense systems there which they've done somewhat more actively than in europe until now the us and allied military presence in the region was justified by the soviet threat but it's been twenty years without a soviet threat however the united states is not going to give our military alliances established during the cold war and now it is very convenient to have a bad guy in pyongyang that can be used as a scapegoat for everything. to north korea the soviet union was the very opposite

of a threat especially in the korean war of the early one nine hundred fifty s. the u.s.s.r. keen to see as many socialist states in largest possible was happy to aid its fellow communist regime against un troops but the veterans of those battles only recently got the chance to talk about their memories for them it was yet another war that didn't exist for. i was there for a year and a half and when we came back we couldn't talk about it couldn't even hint those that died were buried and the notes to their families would read killed in the course of duty where. there was not open for discussion it was hard but it was tough out there of course seventy seven out of seventy eight green cities were destroyed almost completely and yet everywhere i went by saw people trying to rebuild homes roads everything we see women on the road carrying their kids and

their belongings to a new town and would give them lifts we weren't allowed to but we did. when the eastern european communist bloc show apart its influx into the north korean economy plummeted despite the fact a close relationship is maintained by moscow. this veil of secrecy is not helping to boost economic development north korea remains one of only five communist states in the world and by far the most mysterious country on the map gas reserves r r t moscow victor su is a professor of the k.t. ice school of public policy in management he thinks that north korea's isolation how skewed world opinion. north korea is the enemy of the international community is not fair korea has been isolated for over half a century and cheering this time there have been few visitors to their country

countries definitely poor. nutrition especially among the children it has chosen it's on a path of socialism the country there's not worry about what think despite all the strong pressure being on year p.p.i. itself has stood with. its nuclear program and it will hold the negotiations cording to its position. in the six party talks. the nuclear arsenals of the world's main power generally considered to be ultra secure and well guarded even sorry some claim they can be protected from extraterrestrial meddling by

a group of american military offices say aliens have been showing interest in the us sun russia's nukes foot decades citric moon reports. perhaps few things say normal or routine more than a daily dose of coffee a cup of calm in what can on any day be out of the ordinary. out of the ordinary like a nuclear holocaust out of the ordinary. let's say there's an attack from where it doesn't matter. if that were to happen if nuclear payback wouldn't happen. but. that's the claim made by the men in this room are missiles began going into what's called a no go condition or on launchable essentially they were disabled detailed in this report full of court saying sworn affidavits the witnesses have described these

craft s. disc shaped or cylindrical shape or spherical if you think what's being said inside this building is completely ridiculous you might want to consider something my name's robert hastings thank you for coming these are men who might know what may have gone on their former air force missile launch officers missile base officers who say u.f.o. spaceships flying saucers make nuclear weapon systems go haywire in one thousand nine hundred sixty six according to a launch officer david sure his missiles were temporarily activated just as his security guard was reporting a bright object moving from missile to missile to missile. and it's not just in the united states also. in russia. like in one thousand eight hundred incidents that have been in then soviet ukraine given the fact that

these incidents have gone on over there including one incident of their missiles being temporarily activated when a u.f.o. was hovering above the missile base identical to what occurred here i think we can rule out that who whoever our pilots in these craft are either american or russian . maybe they're right maybe they're wrong. maybe there is no way to ever know but if they all are right and then out of the ordinary day is about to unfold . remember the saucers. moon our t. washington d.c. and now has some other news making headlines around the world here on r.t. and in romania around five thousand people have hit the streets of book arrest in protest of the government's austerity measures most to a public sector workers who have seen their salaries slashed by up to twenty five percent protesters are demanding the reversal of wage cuts an increase in the minimum wage and the cancellation of planned layoffs. belgian aspace has been shut

down as part of a twenty four hour strike by at traffic controllers all flights to brussels airport were cancelled while other airports were also affected a spokesman for the belgian navigation service says that no demands were made by workers in negotiations. well that's all your news updates now it's time to turn to the world of business with stephanie. hello and welcome to the business bulletin as we've been reporting in the main news them out of moscow yuri luzhkov has been fired by president medvedev this cough has ruled the city for eighteen years and set the panic conditions for construction business r.t. spoke to the head of penny lane real estate about the impact of his departure on moscow's real estate market we expect

a very long period of time when everybody is frozen nobody is approving or giving any permits everybody is stuck waiting for new orders from the new czar they are all worried if they could do something wrong there will be worried orders to follow as they don't know really know who will be on top tomorrow before everybody is stuck with no job going on. i believe that this would be huge harm to the industry. but russia's top banks have reached twenty percent of their loan portfolio that's the highest level since the beginning of the crisis the international finance corporation part of the world bank says russia needs to develop a market for bad debts so banks can clear them from their balance sheets timothy crouse from the i.f.c. says the company proposes to jumpstart the system with a two hundred million dollar fund. i think that some of the banks here that are

trying too hard to collect their loans are not paying attention to their core business and their market share will shrink and they'll be left holding paper that's not worth anything i think the thing is to create a market so you have a market you need buyers and you need sellers so we have plenty of buyers here capitols not the question i see provides financing we also try to match the buyers and the sellers right now we don't have enough sellers there are not enough banks that want to sell their corporate loans so there's loans to small businesses they'll sell retail loans credit card loans things like this but they won't sell corporate loans yet there's too big of a gap between the price banks think that they should get thirty forty cents on the dollar but buyers that are coming into the market they're not willing to pay that yet there is no track record yet we need a precedent we need a first sale to occur and then prices will go up after that when people see that you can actually collect on bad loans in russia why hasn't the bad that's markets

in russia emerged naturally off its own accord it's a little bit of a cycle psychological issue i think no one wants to admit that they've made bad loans it takes a while to get prepared for this and i think once banks think it through once they see that they're not making progress and restructuring corporate loans once they understand that they're not going to make much progress it makes sense for someone else to give it a try someone that specializes in this business liquidity has a longer goal stop being the bank's main problem do you really think that clean a balance so how banks lending i think it will because banks don't have to allocate capital to the bad loans that are sitting on their books if their management doesn't have to devote time to the bad assets that are sitting in their bank they can spend time doing what they do best which is to originate new loans there people can go out and figure out which corporate lenders are the ones that are most credit worthy which can be their best clients allocate capital to that that's what they

need to do. the russian markets finished in the red on tuesday v.t. b. was the worst performing blue chip on the my sex having one point nine percent into the close banks also suffered energy majors dragged with rosneft down a one point three percent. in economic news russia's central bank has kept its key interest rate on hold at seven am three quarters percent for the fourth month in a row bank officials say the risk of inflation is at an acceptable level they have also previously stated that the possibility of a rate hike this year is very small. russian oil major lukoil intends to buy back the rest of its shares held by conoco phillips the company recently bought almost five percent of its stock from the american firm and now says it will buy the remaining six percent separately lou corps says it intends to challenge an official decision to prevent it from bidding for the tribes tipped off oil fields the fields are among the largest yet to be distributed in russia. german

engineering and electronics firm siemens plans to invest five hundred and forty million dollars in its projects in russia over the next two to three years the company intends to build a number of plants to produce electronics equipment across russia it also plans to build a wind farm in the country's far east it will build all the generating a quick man from start to finish in a joint venture with us hydro unstick corp russian technologies and that's all the business news for now but you can always find more stories of you log on to our web site that's r t dot com slash business.

wealthy british style sun. rise. market why not. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines in two counties reports.

it's now some of the pm here in the russian capital this is auntie you headlines now the mayor of moscow is fired after eighteen years in power the president says he did because he no longer had confidence in the capital's top box. a group of international tourists on a jewish organized aid mission to blockaded gaza is forced to end its journey by israeli warships. the russian. president and the trip to china by meeting them widely predicted to be the next leader of the people's republic. the secretive north korean leader kim jong il promotes his son to a general and a possible first step towards a hereditary transfer of power. next is the kaiser report where our analysts look

at the scandals behind the financial headlines thank you for watching. max kaiser and this is the kaiser report markets finance and scandals we break it on down for you this way you know exactly who's doing what though let's bring in stacey however to get more of the details stacey herbert talk to me a wal-mart's midnight baby formula bread line so this follows on bill simon the c.e.o. of u.s. operations for wal-mart speaking at goldman sachs's retail conference i don't need to tell you that our customer remains challenge you need not go farther than one of our stores on midnight at the end of the month.